Nostra Terra Oil Secures Permit To Drill Well In Texas Acerage

26th Mar 2018 15:40

LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC said Monday it has received drilling approval for one new well across the company's 24 drill-ready locations within the Permian Basin lease located in the Mitchell County of the US state of Texas.

The company added that the permitting process for the second and third drilling locations is continuing and it is currently assessing additional locations to permit, beyond these three, for future drilling.

Nostra Terra is preparing to drill the next well in early May, based on rig availability. The new permit has been approved for a drilling location, which will target the Clear Fork formation.

The drilling operations will be funded from the company's existing resources and facilities.

"Last month we announced the success of the Twin Well, in the Permian Basin, where initial production rates surpassed expectations. At the same time we also became cashflow positive at the corporate level. Positive cashflow generation has since continued to increase thanks to the production increase that we achieved in our Pine Mills asset in East Texas," said Chief Executive Matt Lofgran.

"We're excited to be drilling the next well in the Permian Basin so quickly after the successful Twin Well and aim to continue growing production and increasing cashflow further. The new well has a similar economic profile to the Twin Well and we plan to update shareholders regularly on progress," Lofgran added.

Shares in oil explorer were trading 0.8% lower at 3.62 pence Monday afternoon.

---

Related Shares:

Nostra Terra